Nike stock has lost 75% of its value 💀

@jwportfolio

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Why it worked

The video taps into a common interest in stock market performance and brand analysis, using a well-known brand like Nike to illustrate broader economic principles. The clear presentation of data and concise explanations make complex financial information accessible and engaging.

Summary

The video discusses the decline of Nike's stock value and market share, attributing it to a lack of innovation, a distribution mistake by focusing on direct sales, and a loss of scarcity. The creator highlights how Nike's popularity among teens has fallen significantly, contrasting its past dominance with its current struggles.

Structure

1Nike stock decline and loss of value
2Decreased teen mindshare and brand popularity
3Stopped innovating and relied on old hits
4Distribution mistake by reducing retailer presence
5Lost scarcity and hype around products
6Uncertainty about Nike's future recovery

Product placement

Nike (NKE): Acts - The stock price and brand performance are discussed and analyzed. Removing it would change the video's topic. Appears - The Nike logo and various Nike shoes (Jordans, Dunks, Air Force 1s) are shown visually. Yahoo Finance: Appears - The platform is used to display stock data. Removing it would mean the stock data would need to be presented differently.

On-screen text

Original caption

The sad state of Nike right now! #nike #nke #stocks #investing

More from @jwportfolio

More breakout videos from this creator.

NKE NIKE, Inc. 39.09 -76.70% Past 5 Years NYSE - USD 6M YTD 1Y 2Y 5Y 10Y ALL Nike stock has lost 75% of its value 💀 IT'S PROOF THAT NOTHING IS GUARANTEED PEOPLE BACK IN 10 YEARS AGO COULD HOLD NIKE COMPOUNDER. NOW -76% IN FIVE YEARS, DOWN 50% I THINK IN A YEAR THEN - 2022 NOW - 2025 Favorite clothing brand 31% 26% Favorite footwear brand 60% 46% Nike's teen mindshare has clearly fallen, especially in footwear: 60% -> 46% IN 2022, WHEN I WAS IN EVERYBODY WAS WEARING NIKE A LOT. 60%. THEIR FAVOURITE FOOTWEAR BRAND WAS 46% THAT'S A BIG COMPANY, GUYS. BE GROWING, NOT DECLINING. NIKE 1. STOPPED INNOVATING Relied too heavily on older hits while rivals felt newer. NIKE LEGACY MODERN COMPETITION Jordan / Dunks On / New Balance JUST STOPPED INNOVATING. ANYMORE. COMPETITION FLOOD THE MARKET HERE. 2. DISTRIBUTION MISTAKE Pulled back from retailers and opened shelf space for competitors. COMPETITORS FILLED THE SHELVES NIKE FOCUS ON DIRECT More control. Higher mar Stronger brand. Less shelf pr more visibility DISTRIBUTING TO RETAILERS, BIG MISTAKE. LET THE COMPETITION MARKET AND THERE WAS LESS VISIBILITY OF NIKE. 3. LOST SCARCITY More inventory. More discounts. Less hype. -30% SCARCITY AS WELL. THE PANDA DUNKS WAS A PRIME SO MANY OF THEM, PEOPLE JUST LOST ITS VALUE, DISCOUNT IT, OF THE BRAND, SEE IT AGAIN REFLECTING THE STOCK NKE NIKE, Inc. 39.09 -76.70% Past 5 Years NYSE - USD 6M YTD 1Y 2Y 5Y 10Y ALL I'M NOT SURE BE ABLE TO AROUND. WE'LL SEE

Transcript

It's proof that nothing is guaranteed. People back in 10 years ago could hold Nike compounder. Now -76% in five years, down 50% I think in a year. In 2022, when I was in high school, everybody was wearing Nike a lot. 60% their favorite footwear brand was 46%. That's a big company, guys. You're supposed to be growing, not declining. Nike just stopped innovating anymore. They didn't progress anymore. They let the competition flood the market here. They made their own Nike stores, focus on direct. Distributing to retailers, big mistake. Let the competition market and there was less visibility of Nike. Lost scarcity as well. The Panda Dunks was a prime example. So many of them, people just lost its value, discount it, dropped the value of the brand. See it again reflecting the stock price. I'm not sure if they're going to be able to turn this one around. We'll see though.